INVESTOR RELATIONS UPDATE
July 6, 2011
 General Comments
 
    
    2011 Capacity Guidance- 2011 total system capacity is expected to be up approximately one
percent vs. 2010. Mainline is forecast to be up approximately 1.5 percent, with domestic
capacity expected to be up slightly and international up approximately three percent. Express
is expected to be down approximately one percent.
 
    
    Cash- As of March 31, 2011, the Company had approximately $2.46 billion in total cash and
investments, of which $345 million was restricted. In addition, as of March 31, 2011, the
Companys auction rate securities had a book value of $45 million ($69 million par value).
While these securities are held as investments in non-current marketable securities on our
balance sheet, they are included in our unrestricted cash calculation.
     
    
    Fuel- For the second quarter 2011, the Company anticipates paying between $3.27 and $3.32
per gallon of mainline jet fuel (including taxes). Forecasted volume and fuel prices are
provided in the table below.
 
    
    Profit Sharing / CASM- Profit sharing equals approximately 10% of pre-tax earnings
excluding special items up to a 10% pre-tax margin and 15% above the 10% margin. Profit
sharing is excluded in the CASM guidance given below.
 
    
    Cargo / Other Revenue- Cargo revenue, ticket change fees, excess / overweight baggage
fees, first and second bag fees, contract services, simulator rental, airport clubs, Materials
Services Company (MSC), and inflight service revenues.
 
    
    Taxes / NOL As of December 31, 2010, net operating losses (NOL) available for use by the
Company is approximately $1.9 billion, all of which is expected to be available for use in
2011. The Companys net deferred tax asset, which includes the NOL, is subject to a full
valuation allowance. As of December 31, 2010, the valuation allowances associated with Federal
and state NOL are $368 million and $62 million, respectively. In accordance with generally
accepted accounting principles, future utilization of the NOL will result in a corresponding
decrease in the valuation allowance and offset the Companys tax provision dollar for dollar.
As a result, income tax benefits are not currently recognized in the Companys statement of
operations.
  Please refer to the footnotes and the forward looking statements page of this document for additional information




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##### 



MAINLINE UPDATE
July 6, 2011
 Mainline Comments
 
    
    Mainline data includes US Airways operated flights and all operating expenses are for
mainline operated flights only. Please refer to the following page for information pertaining
to Express.
 1Q11A
    
    2Q11E
    
    3Q11E
    
    4Q11E
    
    FY11EMainline GuidanceAvailable Seat Miles (ASMs) (bil)
    
    17.0
    
    ~19.1
    
    ~19.1
    
    ~17.3
    
    ~72.6CASM ex fuel, special items and profit sharing (YOY % change)1
    
    8.76
    
    0% to +2%
    
    +1% to +3%
    
    +2% to +4%
    
    0% to +2%Cargo Revenues ($ mil)
    
    43
    
    ~45
    
    ~45
    
    ~45
    
    ~180Other Revenues
    
    333
    
    ~330
    
    ~320
    
    ~310
    
    ~1,300Percent Hedged
    
    
    
    
    
    
    
    
    
    Fuel Price (incl. taxes) ($/gal) (as of 6/30/2011)
    
    2.87
    
    3.27  3.32
    
    3.14  3.19
    
    3.15  3.20
    
    3.11  3.16Fuel Gallons Consumed (mil)
    
    256
    
    ~286
    
    ~286
    
    ~262
    
    ~1,089Interest Income ($ mil)
    
    (1)
    
    ~(2)
    
    ~(2)
    
    ~(2)
    
    ~(7)Interest Expense ($ mil)
    
    77
    
    ~79
    
    ~83
    
    ~85
    
    ~324Other Non-Operating (Income)/Expense ex special items ($ mil)2
    
    (1)
    
    ~1
    
    ~1
    
    ~1
    
    ~2
 1Q11A
    
    2Q11E
    
    3Q11E
    
    4Q11E
    
    FY11ECash Flow/Capital Update ($ mil) Inflow/(Outflow)Cash Capex (non-aircraft)
    
    (30)
    
    ~(34)
    
    ~(48)
    
    ~(48)
    
    ~(160)Net new aircraft Capex and PDPs
    
    (10)
    
    ~4
    
    ~(7)
    
    ~2
    
    ~(11)Net Other Cash Flow Adjustments3
    
    (88)
    
    ~36
    
    ~(3)
    
    ~(63)
    
    ~(118)
 Notes:1.
    
    CASM ex fuel, special items and profit sharing is a non-GAAP financial measure. Please see the GAAP to non-GAAP reconciliation at the end of this document2.
    
    Other Non-Operating (Income)/Expense ex special items include primarily gains and losses from foreign currency and the disposition of assets3.
    
    Debt principal repayment, aircraft refinancing, non-cash bond discount amortization/interest deferrals (included in interest expense), and other non-cash items Please refer to the footnotes and the forward looking statements page of this document for additional information




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##### 



EXPRESS UPDATE
July 6, 2011
 Express Comments
 
    
    US Airways Express is a network of nine regional airlines (2 wholly owned) operating under
code share and service agreements with US Airways. All operating expenses (including purchase
agreements) associated with US Airways Express are included within the Express Non-Fuel
Operating Expense line item on our income statement.
 
    
    Express CASM excluding fuel and special items is forecasted to be up six to eight percent
for the year primarily due to the timing of maintenance programs at the Companys wholly-owned
subsidiary, PSA. The maintenance honeymoon for the CRJ-200 fleet ended in 2010. The additional
PSA CRJ-200 maintenance expense increases Express CASM excluding fuel and special items by
approximately 4 points on a year-over-year basis.
 Express Guidance
 1Q11A
    
    2Q11E
    
    3Q11E
    
    4Q11E
    
    FY11EAvailable Seat Miles (ASMs) (bil)
    
    3.49
    
    ~3.69
    
    ~3.62
    
    ~3.33
    
    ~14.13CASM ex fuel and special items
(YOY % change) 1
    
    15.10
    
    +6% to +8%
    
    +9% to +11%
    
    +7% to +9%
    
    +6% to +8%Fuel Price (incl taxes) ($/gal)
    
    2.92
    
    3.27  3.32
    
    3.19  3.24
    
    3.19  3.24
    
    3.14  3.19Fuel Gallons Consumed (mil)
    
    83
    
    ~87
    
    ~85
    
    ~80
    
    ~335
 Express Carriers
 Air Wisconsin Airlines Corporation
    
    Piedmont Airlines, Inc. 2Chautauqua Airlines, Inc.
    
    PSA Airlines, Inc. 2Colgan Air, Inc. 4
    
    Republic Airline Inc.Mesa Airlines, Inc. 3
    
    Trans States Airlines, Inc.4Mesaba Airlines 4
 Notes:1.
    
    CASM ex fuel expense and special items is a non-GAAP financial measure. Please see the GAAP to non-GAAP reconciliation at the end of this document.2.
    
    Wholly owned subsidiary of US Airways Group, Inc.3.
    
    Subsidiary of Mesa Air Group, Inc.4.
    
    Pro-rate agreement. Please refer to the footnotes and the forward looking statements page of this document for additional information




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##### 



FLEET UPDATE
July 6, 2011
 Fleet Comments
 
    
    The Company expects to take delivery of 12 A321 aircraft in the second half of 2011, and an
additional 12 A320 family aircraft in 2012. These 24 aircraft will be used to replace legacy
737 aircraft. The Company has financing commitments in place for these aircraft.
 Mainline
Fleet Update (End of Period)
 YE10A
    
    
    1Q11A
    
    
    2Q11A
    
    
    3Q11E
    
    
    4Q11EMainlineEMB-190
    
    
    15
    
    
    
    15
    
    
    
    15
    
    
    
    15
    
    
    
    15737-300
    
    
    19
    
    
    
    19
    
    
    
    17
    
    
    
    15
    
    
    
    7737-400
    
    
    40
    
    
    
    40
    
    
    
    40
    
    
    
    40
    
    
    
    40A319
    
    
    93
    
    
    
    93
    
    
    
    93
    
    
    
    93
    
    
    
    93A320
    
    
    72
    
    
    
    72
    
    
    
    72
    
    
    
    72
    
    
    
    72A321
    
    
    51
    
    
    
    51
    
    
    
    51
    
    
    
    54
    
    
    
    63A330
    
    
    16
    
    
    
    16
    
    
    
    16
    
    
    
    16
    
    
    
    16B757
    
    
    23
    
    
    
    24
    
    
    
    24
    
    
    
    24
    
    
    
    24B767
    
    
    10
    
    
    
    10
    
    
    
    10
    
    
    
    10
    
    
    
    10Total
    
    
    339
    
    
    
    340
    
    
    
    338
    
    
    
    339
    
    
    
    340
 Express
Fleet Update (End of Period)
 YE10A
    
    
    1Q11A
    
    
    2Q11A
    
    
    3Q11E
    
    
    4Q11EExpressDH8
    
    
    50
    
    
    
    50
    
    
    
    50
    
    
    
    50
    
    
    
    50CRJ-200
    
    
    112
    
    
    
    112
    
    
    
    112
    
    
    
    112
    
    
    
    112CRJ-700
    
    
    14
    
    
    
    14
    
    
    
    14
    
    
    
    14
    
    
    
    14CRJ-900
    
    
    38
    
    
    
    38
    
    
    
    38
    
    
    
    38
    
    
    
    38EMB-170
    
    
    20
    
    
    
    20
    
    
    
    20
    
    
    
    20
    
    
    
    20ERJ-145
    
    
    9
    
    
    
    9
    
    
    
    9
    
    
    
    9
    
    
    
    9EMB-175
    
    
    38
    
    
    
    38
    
    
    
    38
    
    
    
    38
    
    
    
    38Total
    
    
    281
    
    
    
    281
    
    
    
    281
    
    
    
    281
    
    
    
    281
 Please refer to the footnotes and the forward looking statements page of this document for additional information




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##### 



SHARES OUTSTANDING
July 6, 2011
 
    
    The estimated weighted average shares outstanding for the remainder of the year are listed
below. The interest addback to net income for purposes of computing diluted earnings per share
is net of the related effect of profit sharing.
 Shares Outstanding ($ and shares mil)1
    
    Basic
    
    
    Diluted
    
    
    Interest AddbackFor Q2-Q4Earnings above $71 million
    
    
    162.1
    
    
    
    202.4
    
    
    
    6.9Earnings between $30 million and $71 million
    
    
    162.1
    
    
    
    202.2
    
    
    
    6.8Earnings up to $30 million
    
    
    162.1
    
    
    
    164.4
    
    
    
    Net Loss
    
    
    162.1
    
    
    
    162.1
    
    
    
    For FY 2011 (Average)Earnings above $283 million
    
    
    162.0
    
    
    
    202.3
    
    
    
    27.0Earnings between $116 million and $283 million
    
    
    162.0
    
    
    
    202.1
    
    
    
    26.7Earnings up to $116 million
    
    
    162.0
    
    
    
    164.4
    
    
    
    Net Loss
    
    
    162.0
    
    
    
    162.0
    
    
    
    
 Notes:1.
    
    Shares outstanding are based upon several estimates and assumptions, including average per
share stock price, stock options, stock appreciation rights, restricted stock unit award activity,
and conversion of outstanding senior convertible notes. The number of shares in the actual
calculation of earnings per share will likely be different from those set forth above. Please refer to the footnotes and the forward looking statements page of this document for additional information




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##### 



GAAP to Non-GAAP RECONCILIATION
July 6, 2011
 Reconciliation of GAAP to Non-GAAP Financial Information
  GAAP to Non-GAAP Reconciliation ($ mil except ASM and CASM data)1Q11
    
    
    2Q11 Range
    
    
    3Q11 Range
    
    
    4Q11 Range
    
    
    FY11 RangeActual
    
    
    Low
    
    
    High
    
    
    Low
    
    
    High
    
    
    Low
    
    
    High
    
    
    Low
    
    
    HighMainlineMainline operating expenses excluding profit sharing
    
    $
    2,230
    
    
    $
    2,479
    
    
    $
    2,524
    
    
    $
    2,428
    
    
    $
    2,472
    
    
    $
    2,306
    
    
    $
    2,348
    
    
    $
    9,418
    
    
    $
    9,581Less mainline fuel (net of (gains)/losses from fuel hedges)
    
    
    734
    
    
    
    935
    
    
    
    950
    
    
    
    898
    
    
    
    912
    
    
    
    825
    
    
    
    838
    
    
    
    3,393
    
    
    
    3,434Less special items
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    3Mainline operating expense excluding fuel, special items and profit sharing
    
    
    1,493
    
    
    
    1,543
    
    
    
    1,574
    
    
    
    1,530
    
    
    
    1,560
    
    
    
    1,480
    
    
    
    1,510
    
    
    
    6,023
    
    
    
    6,143Mainline CASM (excluding profit sharing) (cts)
    
    
    13.09
    
    
    
    12.98
    
    
    
    13.21
    
    
    
    12.71
    
    
    
    12.94
    
    
    
    13.33
    
    
    
    13.57
    
    
    
    12.97
    
    
    
    13.20Mainline CASM excluding fuel,special items and profit sharing (Non-GAAP) (cts)
    
    
    8.76
    
    
    
    8.08
    
    
    
    8.24
    
    
    
    8.01
    
    
    
    8.17
    
    
    
    8.56
    
    
    
    8.73
    
    
    
    8.30
    
    
    
    8.47Mainline ASMs (bil)
    
    
    17.0
    
    
    
    19.1
    
    
    
    19.1
    
    
    
    19.1
    
    
    
    19.1
    
    
    
    17.3
    
    
    
    17.3
    
    
    
    72.6
    
    
    
    72.6ExpressExpress operating expenses
    
    $
    770
    
    
    $
    812
    
    
    $
    826
    
    
    $
    797
    
    
    $
    811
    
    
    $
    747
    
    
    $
    760
    
    
    $
    3,119
    
    
    $
    3,170Less express fuel expense
    
    
    242
    
    
    
    284
    
    
    
    289
    
    
    
    271
    
    
    
    275
    
    
    
    255
    
    
    
    259
    
    
    
    1,053
    
    
    
    1,065Less special items
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    1Express operating expenses excluding fuel and special items
    
    
    527
    
    
    
    528
    
    
    
    538
    
    
    
    526
    
    
    
    535
    
    
    
    492
    
    
    
    501
    
    
    
    2,065
    
    
    
    2,105Express CASM (cts)
    
    
    22.06
    
    
    
    22.01
    
    
    
    22.40
    
    
    
    22.01
    
    
    
    22.39
    
    
    
    22.44
    
    
    
    22.84
    
    
    
    22.07
    
    
    
    22.43Express CASM excluding fuel and special items (Non-GAAP) (cts)
    
    
    15.10
    
    
    
    14.30
    
    
    
    14.57
    
    
    
    14.52
    
    
    
    14.79
    
    
    
    14.78
    
    
    
    15.05
    
    
    
    14.62
    
    
    
    14.89Express ASMs (bil)
    
    
    3.49
    
    
    
    3.69
    
    
    
    3.69
    
    
    
    3.62
    
    
    
    3.62
    
    
    
    3.33
    
    
    
    3.33
    
    
    
    14.13
    
    
    
    14.13Other Non Operating (Income)/ExpenseReported other non-operating (income)/expense
    
    $
    (1
    )
    
    $
    1
    
    
    $
    1
    
    
    $
    1
    
    
    $
    1
    
    
    $
    1
    
    
    $
    1
    
    
    $
    2
    
    
    $
    2Less special items
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other non-operating (income)/expense excluding special items
    
    
    (1
    )
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    2
    
    
    
    2
 Note: Amounts may not recalculate due to rounding. Please refer to the footnotes and the forward looking statements page of this document for additional information




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##### 



FORWARD LOOKING STATEMENTS
July 6, 2011
 FORWARD-LOOKING STATEMENTS
  Please refer to the footnotes and the forward looking statements page of this document for additional information